Acting United States Attorney Kevin F. McDonald stated recently that Jerlene E. McKnight, 46, of Salters, was charged in a 35-count indictment with assisting in the preparation of false federal income tax returns by supplying individuals with fraudulent W-2 forms to be used to obtain refunds, in violation of Title 18, United States Code, Section 2 and Title 26, United States Code, Section 7206 (2).
IRS agents allege that McKnight prepared at least 35 false W-2 forms purporting to be from two area businesses, showing that the taxpayers had worked at the businesses and had taxes withheld from their paychecks. However, one of the businesses was non-existent, and the other did not employ any of the taxpayers. Tax refunds totaling $129,165 were issued as a result of the fraud.
Mr. McDonald stated the maximum penalty McKnight could receive is a fine of $100,000 and imprisonment for three years.
Mr. McDonald stated that the case was investigated by agents of the Internal Revenue Service, Criminal Investigation, and that he was assigned the case to Assistant United States Attorney William E. Day, II, of the United States Attorney’s Florence office for prosecution.
The Acting United States Attorney stated that all charges in this indictment are merely accusations and that all defendants are presumed innocent until and unless proven guilty.